{"id":72445,"date":"2025-06-13T15:39:12","date_gmt":"2025-06-13T10:09:12","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=72445"},"modified":"2025-06-13T15:39:16","modified_gmt":"2025-06-13T10:09:16","slug":"goods-transport-agency-under-gst-2","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/goods-transport-agency-under-gst-2\/","title":{"rendered":"Goods Transport Agency Under GST"},"content":{"rendered":"\n<div class=\"wp-block-group has-background\" style=\"background-color:#f2f5f9\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Consignment Note Is Key for GTA Status<\/strong>: A transporter qualifies as a GTA under GST only if a consignment note is issued, serving as proof of a transport contract.<\/li>\n\n\n\n<li><strong>GST Rate Depends on Service Type<\/strong>: GTA services are taxed at 0%, 5%, 12%, or 18% based on the nature of goods, service recipients, and input tax credit eligibility.<\/li>\n\n\n\n<li><strong>Reverse Charge Mechanism Applies Broadly<\/strong>: In most cases, GST on GTA services is paid by the service recipient (e.g., factories, companies) under reverse charge.<\/li>\n\n\n\n<li><strong>GTA Registration Thresholds<\/strong>: A GTA must register for GST if the turnover exceeds \u20b920 lakh (\u20b910 lakh for special category states), unless services are fully under reverse charge.<\/li>\n\n\n\n<li><strong>Place of Supply Affects GST Type<\/strong>: For registered recipients, the supply location is their business address; for unregistered ones, it\u2019s the goods pickup point\u2014impacting whether IGST or CGST\/SGST applies.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>The Goods Transport Agency under GST is liable for <a href=\"https:\/\/en.eustat.eus\/documentos\/elem_12996\/definicion.html\" target=\"_blank\" rel=\"noopener\">transporting goods<\/a> from one location to another to help the sender and receiver of goods. The place of supply determines the GST rate applicability for transporting such goods.<\/p>\n\n\n\n<p>Further, the GST liability varies based on the aggregate annual turnover of GTA, registered or unregistered dealers. Here is a comprehensive overview of GST liability applicable on inter-state and intra-state goods transport to comply with Indian tax laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is a Goods Transport Agency (GTA)?&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Is-a-Goods-Transport-Agency-GTA-.png\" alt=\"What Is a Goods Transport Agency (GTA)\u00a0?\" class=\"wp-image-72475\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Is-a-Goods-Transport-Agency-GTA-.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Is-a-Goods-Transport-Agency-GTA--300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Is-a-Goods-Transport-Agency-GTA--150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Is-a-Goods-Transport-Agency-GTA--768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>Goods Transport Agency (GTA) is a company liable to transport goods by road. Central Tax (Applicable Rate) notification highlights that the GTA needs to arrange the transportation of goods from one place to another by road by issuing a<a href=\"https:\/\/acrosslogistics.com\/blog\/en\/consignment-note\" target=\"_blank\" rel=\"noopener\"> consignment note.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is a Consignment Note?<\/h2>\n\n\n\n<p>When the Goods Transportation Agency (GTA) receives goods for road transportation, it issues consignment notes as a <a href=\"https:\/\/www.openriskmanual.org\/wiki\/Formal_Document\" target=\"_blank\" rel=\"noopener\">formal document.<\/a> This note is a proof of contract between the consignor and the GTA.<\/p>\n\n\n\n<p>Here are the details included in a consignment note:<\/p>\n\n\n\n<p>\u25cf Unique serial number<\/p>\n\n\n\n<p>\u25cf Names of the consignor and the consignee<\/p>\n\n\n\n<p>\u25cf Details of vehicle registration<\/p>\n\n\n\n<p>\u25cf&nbsp;Description of goods<\/p>\n\n\n\n<p>\u25cf&nbsp;Origin and destination places<\/p>\n\n\n\n<p>\u25cf&nbsp;Details about the person liable to pay the service tax (consignor, consignee or GTA)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Are the Services Provided by GTA?&nbsp;<\/h2>\n\n\n\n<p>The services provided by GTA are as follows:<\/p>\n\n\n\n<p>\u25cf&nbsp;<strong>Transportation Arrangement:<\/strong> The GTA is liable to coordinate the movement of goods from the consignor to the consignee.<\/p>\n\n\n\n<p>\u25cf <strong>Loading and Unloading: <\/strong>The company is liable to handle the physical movement of goods.<\/p>\n\n\n\n<p>\u25cf&nbsp;<strong>Tracking and Tracing: <\/strong>The GTA is liable to track and trace the goods based on shipment location and movement.<\/p>\n\n\n\n<p>\u25cf\u00a0<strong>Insurance (Optional): <\/strong>The company can choose to assist with insurance and <a href=\"https:\/\/www.inboundlogistics.com\/articles\/customs-clearance\" target=\"_blank\" rel=\"noopener\">customs clearance<\/a> wherein it deals with import or export procedures.<\/p>\n\n\n\n<p><strong>\u25cf&nbsp;Issuing Consignment Note: <\/strong>For each shipment, the GTA needs to issue a consignment note.<\/p>\n\n\n\n<p>\u25cf&nbsp;<strong>Vehicle Management: <\/strong>The GTA is responsible for arranging vehicles and ensuring that vehicles are available for goods transportation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">List of GTA Services with a 0% Rate of GST in 2025<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/List-of-GTA-Services-with-a-0-Rate-of-GST-in-2025.jpg\" alt=\"List of GTA Services with a 0% Rate of GST in 2025\" class=\"wp-image-72478\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/List-of-GTA-Services-with-a-0-Rate-of-GST-in-2025.jpg 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/List-of-GTA-Services-with-a-0-Rate-of-GST-in-2025-300x169.jpg 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/List-of-GTA-Services-with-a-0-Rate-of-GST-in-2025-150x84.jpg 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/List-of-GTA-Services-with-a-0-Rate-of-GST-in-2025-768x432.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>The following table illustrates the GTA services with a 0% GST rate:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>SAC Code<\/strong><\/td><td><strong>Description of GTA Service for Various Purposes<\/strong><\/td><td><strong>GST Rate<\/strong><\/td><\/tr><tr><td>9965<\/td><td>GTA services for transporting goods (including used household goods for personal use)<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to agricultural produce<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to milk, salt, and grains (including flour, rice, pulses)<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to organic manure<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to newspapers\/magazines<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to relief materials for victims of natural or man-made disasters<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to defence\/military equipment<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to unregistered persons (including an unregistered casual taxable person)<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to Central Government departments\/establishments<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to State Government departments\/establishments<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to Union Territory departments\/establishments<\/td><td>0%<\/td><\/tr><tr><td>9965 or 9967<\/td><td>GTA services to Local authorities or Governmental agencies (registered only for TDS under the CGST Act)<\/td><td>0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">List of GTA Services with a 5% to 18% Rate of GST in 2025<\/h2>\n\n\n\n<p>The following list presents the GTA services with a 5% to 18% GST rate:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>SAC Code<\/strong><\/td><td><strong>Service Description<\/strong><\/td><td><strong>CGST<\/strong><\/td><td><strong>SGST or UTGST<\/strong><\/td><td><strong>IGST<\/strong><\/td><td><strong>Conditions<\/strong><\/td><\/tr><tr><td>9965<\/td><td>The GST liability is not with GTA<\/td><td>2.5%<\/td><td>2.5%<\/td><td>5%<\/td><td>No input tax credit is available<\/td><\/tr><tr><td>9965<\/td><td>GTA has a GST liability<\/td><td>2.5% or 6%<\/td><td>2.5% or 6%<\/td><td>5% or 12%<\/td><td>No input tax credit is available for GTA services taxed at 2.5%.<\/td><\/tr><tr><td>9967<\/td><td>Additional services in transport (Excluding GTA services which fall under SAC code 9965)<\/td><td>9%<\/td><td>9%<\/td><td>18%<\/td><td>\u2013<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What Goods Transportation Services Are Exempt from GST?<\/h2>\n\n\n\n<p>Here are the goods transportation services exempt from GST:<\/p>\n\n\n\n<p>\u25cf\u00a0Transportation of goods using inland waterways or roads (excluding the GTA services or services rendered by a <a href=\"https:\/\/www.shiprocket.in\/encyclopedia\/courier-service\/\" target=\"_blank\" rel=\"noopener\">courier agency<\/a>)<\/p>\n\n\n\n<p>\u25cf\u00a0Goods transportation, including grains, milk, manure, and others<\/p>\n\n\n\n<p>\u25cf&nbsp;Transportation of goods via a single carriage below the specified threshold of \u20b9750 or \u20b91,500<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Was the Situation Under Service Tax?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Was-the-Situation-Under-Service-Tax.png\" alt=\"What Was the Situation Under Service Tax?\" class=\"wp-image-72480\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Was-the-Situation-Under-Service-Tax.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Was-the-Situation-Under-Service-Tax-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Was-the-Situation-Under-Service-Tax-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/What-Was-the-Situation-Under-Service-Tax-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>Reverse Charge Mechanism remained applicable under the service tax regime, similar to the GST regime. However, the rules were as follows:<\/p>\n\n\n\n<p>\u25cf\u00a040% of the value of supplies was taxable with abatement for 60% of the value, for transportation of used <a href=\"https:\/\/www.cptinstitute.org\/what-are-household-goods-and-personal-effects\/\" target=\"_blank\" rel=\"noopener\">household goods<\/a><\/p>\n\n\n\n<p>\u25cf&nbsp;30% of the value of transportation of general goods was taxable with a 70% abatement<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When Does a GTA Need to Register?<\/h2>\n\n\n\n<p>Under the following conditions, GTA has to register under GST:<\/p>\n\n\n\n<p>\u25cf&nbsp;If the annual turnover exceeds \u20b920 lakhs for states excluding special category ones<\/p>\n\n\n\n<p>\u25cf&nbsp;In case the aggregate annual turnover is more than \u20b910 lakhs for special category states<\/p>\n\n\n\n<p>Notably, if the services are categorised under the Reverse Charge Mechanism, the GTA need not register under GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Scenarios Requiring GTA Registration for GST<\/h2>\n\n\n\n<p>The tables below illustrate the scenarios for GST registration for GTA:<\/p>\n\n\n\n<p><strong>Scenario 1:<\/strong><\/p>\n\n\n\n<p>Here is the first scenario for GST registration:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Service<\/strong><\/td><td><strong>Turnover<\/strong><\/td><td><strong>GST Payer<\/strong><\/td><\/tr><tr><td>If it transports goods of a registered dealer or other seven entities<\/td><td>\u20b99 lakh<\/td><td>Registered dealer or service recipient under Reverse Charge Mechanism<\/td><\/tr><tr><td>In case it transports goods of an unregistered dealer (URD)<\/td><td>\u20b95 lakh<\/td><td>GTA has a tax liability<\/td><\/tr><tr><td>Total Turnover<\/td><td>\u20b914 lakh<\/td><td>Since the aggregate annual turnover is less than \u20b920 lakh, GTA need not register under GST.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Scenario 2:<\/strong><\/p>\n\n\n\n<p>Here is the second scenario illustrating the need for GST registration for GTA:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Service<\/strong><\/td><td><strong>Turnover<\/strong><\/td><td><strong>GST Payer<\/strong><\/td><\/tr><tr><td>If the GTA transports goods of a registered supplier<\/td><td>\u20b918 lakh<\/td><td>Registered dealer has the GST liability or the recipient of goods in case of the Reverse Charge Mechanism<\/td><\/tr><tr><td>In case the GTA transports goods of an unregistered supplier<\/td><td>\u20b94 lakh<\/td><td>GTA has a GST liability<\/td><\/tr><tr><td>Total Turnover<\/td><td>\u20b922 lakh<\/td><td>GTA will have to register under GST as the total turnover exceeds \u20b920 lakh and services are provided to an unregistered supplier<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Scenario 3:<\/strong><\/p>\n\n\n\n<p>Here is the third scenario illustrating the GST registration requirements for GTA:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Service<\/strong><\/td><td><strong>Turnover<\/strong><\/td><td><strong>GST Payer<\/strong><\/td><\/tr><tr><td>In case GTA transports goods of a registered supplier or any of the seven entities<\/td><td>\u20b926 lakh<\/td><td>Tax liability is with the registered supplier or recipient of services (under RCM)<\/td><\/tr><tr><td>Transportation of goods of an unregistered supplier<\/td><td>\u20b90 lakh<\/td><td>Not Applicable<\/td><\/tr><tr><td>Total Turnover<\/td><td>\u20b926 lakh<\/td><td>As per Notification Number 05\/2017, GTA will not have to register under GST despite turnover exceeding \u20b920 lakh.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Who Pays GST When Hiring a GTA?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Who-Pays-GST-When-Hiring-a-GTA.png\" alt=\"Who Pays GST When Hiring a GTA?\" class=\"wp-image-72483\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Who-Pays-GST-When-Hiring-a-GTA.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Who-Pays-GST-When-Hiring-a-GTA-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Who-Pays-GST-When-Hiring-a-GTA-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Who-Pays-GST-When-Hiring-a-GTA-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>The recipient of service is liable to pay GST on Goods Transport Agency services, under the Reverse Charge Mechanism, and not the service providers. For instance, businesses hiring GTA including corporations, factories, and other entities, bear the tax liability. <\/p>\n\n\n\n<p>Notably, if the GTA chooses to pay GST at 12% with ITC (Input Tax Credit), then the GST liability is with GTA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Which Businesses Are Required to Pay GST Under Reverse Charge for GTA Services?<\/h2>\n\n\n\n<p>If GTA does not pay Central Tax at a 6% rate, the recipients of services needs to bear the tax liability. The recipients, however, need to be from a <a href=\"https:\/\/howtoexportimport.com\/Meaning-of-term-Taxable-Territory-under-GST-9445.aspx\" target=\"_blank\" rel=\"noopener\">taxable territory<\/a> and the categories mentioned below:<\/p>\n\n\n\n<p>\u25cf&nbsp;Factories registered under the Factories Act, 1948<\/p>\n\n\n\n<p>\u25cf&nbsp;Societies registered under the Societies Registration Act, 1860 or any other applicable law<\/p>\n\n\n\n<p>\u25cf&nbsp;A registered person under CGST, SGST, UTGST or IGST (Central\/State\/Union Territory\/Integrated Goods and Services Tax)<\/p>\n\n\n\n<p>\u25cf&nbsp;A Co-operative society<\/p>\n\n\n\n<p>\u25cf&nbsp;A corporate body established by or under any law<\/p>\n\n\n\n<p>\u25cf A partnership firm (registered or unregistered)<\/p>\n\n\n\n<p>\u25cf&nbsp;Casual taxable persons<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who Needs to Pay GST Under Reverse Charge?<\/h2>\n\n\n\n<p>Based on the person paying freight, here is the entity liable to pay GST under reverse charge for the road transportation services or road transport services:<\/p>\n\n\n\n<p><strong>1. If the sender pays the freight payment<\/strong><\/p>\n\n\n\n<p>In case the sender (consignor) falls under special categories, they need to pay GST on a reverse charge basis. Notably, the <a href=\"https:\/\/sell.amazon.in\/grow-your-business\/amazon-global-selling\/blogs\/consignor-vs-consignee\" target=\"_blank\" rel=\"noopener\">consignor <\/a>or sender is the recipient of transportation services.<\/p>\n\n\n\n<p><strong>2. If the receiver pays the freight payment<\/strong><\/p>\n\n\n\n<p>When the consignee or receiver is considered the recipient of services and falls under special categories, they have the GST liability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Different Scenarios to Determine Who Pays GST for GTA Services<\/h2>\n\n\n\n<p>Here are different instances determining the GST liability for GTA services:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Supplier\/Consignor<\/strong><\/td><td><strong>Receiver of Goods\/Consignee<\/strong><\/td><td><strong>Person Paying Freight<\/strong><\/td><td><strong>A Person with GST Liability<\/strong><\/td><\/tr><tr><td>A registered or unregistered company<\/td><td>An unregistered or registered partnership firm<\/td><td>Company<\/td><td>Company<\/td><\/tr><tr><td>An unregistered or registered partnership firm<\/td><td>Registered Dealer A<\/td><td>Dealer A<\/td><td>Dealer A<\/td><\/tr><tr><td>A registered or unregistered partnership firm<\/td><td>Registered Dealer B<\/td><td>Firm<\/td><td>Firm<\/td><\/tr><tr><td>An unregistered or registered Co-operative Society Ltd<\/td><td>Registered Dealer A<\/td><td>Dealer A<\/td><td>Dealer A<\/td><\/tr><tr><td>A registered or unregistered Co-operative Society Ltd<\/td><td>Registered Dealer A<\/td><td>Co-operative Society Ltd<\/td><td>Co-operative Society Ltd<\/td><\/tr><tr><td>Registered or unregistered Company A Ltd.<\/td><td>Unregistered or registered Company C Ltd.<\/td><td>C Ltd<\/td><td>C Ltd<\/td><\/tr><tr><td>URD A<\/td><td>Registered Dealer B<\/td><td>URD A<\/td><td>Dealer B<\/td><\/tr><tr><td>URD A<\/td><td>Registered Dealer B<\/td><td>Dealer B<\/td><td>Dealer B<\/td><\/tr><tr><td>URD A<\/td><td>URD Z<\/td><td>URD Z<\/td><td>Exempted<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Reverse Charge Implications for an Unregistered&nbsp;GTA<\/h2>\n\n\n\n<p>Earlier, if registered businesses received goods or services from unregistered suppliers, with a cost not more than \u20b95,000 per day, they were exempted from GST liability. With revisions in the regulations, the reverse charge mechanism applies to specific unregistered purchases, as declared by the government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Input Tax Credit (ITC) for GTA Services&nbsp;<\/h2>\n\n\n\n<p>ITC claims for GTA vary based on the chosen GST rate as follows:<\/p>\n\n\n\n<p><strong>1. ITC When the GTA Pays GST<\/strong><\/p>\n\n\n\n<p>GTA has the option to choose a 5% or 12% GST rate based on the tax regime they opt for at the beginning of a <a href=\"https:\/\/www.angelone.in\/knowledge-center\/income-tax\/what-is-financial-year\" target=\"_blank\" rel=\"noopener\">financial year<\/a>. If they choose a 12% GST, they can claim ITC on inputs and services purchased. However, if GTA opts for a 5% GST rate, they cannot claim ITC.<\/p>\n\n\n\n<p><strong>2. ITC When the Service Receiver Pays GST Under Reverse Charge<\/strong><\/p>\n\n\n\n<p>If the service receiver operates under a reverse charge mechanism, he\/she can claim ITC instead of GTA. This helps the service recipient reduce their GST liability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Create an Invoice for GTA Services?<\/h2>\n\n\n\n<p>You need to include the following details to create a GST-compliant tax invoice for GTA:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Name, GSTIN and address of the GTA<\/li>\n\n\n\n<li>Unique invoice number and date of invoice<\/li>\n\n\n\n<li>Consignor and consignee details<\/li>\n\n\n\n<li>Description of transported goods<\/li>\n\n\n\n<li>Description of service<\/li>\n\n\n\n<li>GST rate and amount<\/li>\n\n\n\n<li>Total amount including the GST payable<\/li>\n<\/ul>\n\n\n\n<p>Notably, invoice matching with transaction details is crucial for a transportation business through GTA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Should a GTA Pay Their Tax?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/How-Should-a-GTA-Pay-Their-Tax.png\" alt=\"How Should a GTA Pay Their Tax?\" class=\"wp-image-72485\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/How-Should-a-GTA-Pay-Their-Tax.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/How-Should-a-GTA-Pay-Their-Tax-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/How-Should-a-GTA-Pay-Their-Tax-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/How-Should-a-GTA-Pay-Their-Tax-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>A registered GTA can pay GST online using the GST portal with payment methods like credit\/debit cards, UPI or net banking. For offline payment, GTA has to generate a GST challan online and pay at one of the authorised banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST Returns that a GTA Must File<\/h2>\n\n\n\n<p>The GST returns that a GTA needs to file are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>GST Return<\/strong><\/td><td><strong>Purpose of Filing<\/strong><\/td><\/tr><tr><td>GSTR-1<\/td><td>Outward supplies details filed quarterly or monthly<\/td><\/tr><tr><td>GSTR-3B<\/td><td>Summarises all transactions filed monthly<\/td><\/tr><tr><td>GSTR-9<\/td><td>Annual return summarising yearly transactions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Determining the Place of Supply for GTA Services<\/h2>\n\n\n\n<p>Here is how to determine the place of supply for GTA based on a registered or unregistered recipient of services:<\/p>\n\n\n\n<p><strong>1. Registered Recipients:<\/strong> For a registered recipient, the place of supply is the registered business address, determining inter-state or intra-state transactions (IGST\/CGST and SGST).<\/p>\n\n\n\n<p><strong>2. Unregistered Recipients:<\/strong> For an unregistered recipient, the place of supply is the location from where GTA collects goods; this determines IGST, CGST and SGST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Examples for Determining the Place of Supply<\/h2>\n\n\n\n<p>Here are some scenarios depicting various transactions to determine the place of supply:<\/p>\n\n\n\n<p><strong>Scenario 1:<\/strong><\/p>\n\n\n\n<p>A registered dealer Mr X in Maharashtra hires a GTA for goods transportation from Mumbai to Pune.<\/p>\n\n\n\n<p><strong>Place of Supply<\/strong>: Maharashtra<\/p>\n\n\n\n<p><strong>Applicable GST:<\/strong> CGST and SGST as it is an intra-state supply<\/p>\n\n\n\n<p><strong>Scenario 2:<\/strong><\/p>\n\n\n\n<p>A registered dealer Mr Y in Karnataka hires GTA to transport goods to Chennai from Bangalore.<\/p>\n\n\n\n<p><strong>Place of Supply<\/strong>: Karnataka<\/p>\n\n\n\n<p><strong>Applicable GST: <\/strong>IGST as it is an inter-state goods transport<\/p>\n\n\n\n<p><strong>Scenario 3:<\/strong><\/p>\n\n\n\n<p>An unregistered dealer Mr Z in Delhi hires GTA to transport goods to Haryana from Delhi<\/p>\n\n\n\n<p><strong>Place of Supply:<\/strong> Delhi (where GTA collects the concerned goods)<\/p>\n\n\n\n<p><strong>GST Applicable<\/strong>: IGST as it is an inter-state transport of goods<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Importance of \u2018In Relation To&#8217; in the Definition of GTA&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Importance-of-\u2018In-Relation-To-in-the-Definition-of-GTA-.png\" alt=\"Importance of \u2018In Relation To&#039; in the Definition of GTA\u00a0\" class=\"wp-image-72487\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Importance-of-\u2018In-Relation-To-in-the-Definition-of-GTA-.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Importance-of-\u2018In-Relation-To-in-the-Definition-of-GTA--300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Importance-of-\u2018In-Relation-To-in-the-Definition-of-GTA--150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/06\/Importance-of-\u2018In-Relation-To-in-the-Definition-of-GTA--768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>The term &#8216;in relation to&#8217; refers to goods connected to GTA and actual transportation by road associated with the actual movement of goods. This includes GTA activities like unloading, loading, packing, unpacking and others directly associated with transportation.<\/p>\n\n\n\n<p>Notably, independent services that are not directly related to transportation are not categorised under GTA. Services directly linked to goods transportation and GTA have consistent treatment under the GST laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Goods Transport Agency under GST has to register themselves as per GST laws if their annual turnover exceeds \u20b920 lakh (\u20b910 lakh for special category states). Further, the registration requirements vary based on whether GTA transports goods of registered or unregistered dealers.<\/p>\n\n\n\n<p>Notably, GTA has a choice to opt for a 5% or 12% GST regime at the beginning of a financial year. If they opt for the latter, they can claim ITC to reduce their <a href=\"https:\/\/www.cfp.pt\/en\/glossary\/tax-burden\" target=\"_blank\" rel=\"noopener\">tax burden<\/a> and liability. However, under the reverse charge mechanism, the service recipients are eligible to claim ITC on input services.<\/p>\n\n\n\n<p>Ensure you adhere to the applicable GST laws for transparency and tax compliance. In the transportation and logistics sector, compliance requirements are as strict as in other sectors. Associations of persons well aware of the laws can help you reduce the compliance burden.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f2f5f9\">\ud83d\udca1If you want to streamline your invoices and make payments via credit or debit card or UPI, consider using\u00a0<a href=\"https:\/\/piceapp.com\/\">the PICE App<\/a>. Explore the PICE App today and take your business to new heights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>FAQs<\/strong><\/h3>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1749724895498\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is a Goods Transport Agency (GTA) under GST?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A GTA is any person or company that provides goods transport services by road and issues a consignment note. Issuing the consignment note is essential\u2014it confirms a contractual obligation to transport goods, which distinguishes GTA from ordinary transporters.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1749724908565\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Who pays GST for GTA services \u2013 the service provider or recipient?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>In most cases, the service recipient pays GST under the Reverse Charge Mechanism (RCM)\u2014especially if they are a company, firm, or registered business. However, if the GTA opts to pay GST at 12%, then the GTA is liable to pay and can claim input tax credit (ITC).<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1749724916458\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Is GST registration mandatory for every GTA?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No. A GTA must register only if its aggregate turnover exceeds \u20b920 lakh (\u20b910 lakh for special category states) and it provides services to unregistered persons. If all services are covered under RCM, registration is not mandatory.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1749724925609\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is the GST rate applicable to GTA services?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>GTA services may attract 0%, 5%, 12%, or 18% GST, depending on the nature of goods and service recipient. Essential goods like grains and milk have 0% GST, while opting to pay 12% allows the GTA to claim ITC, unlike the 5% option.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1749724935983\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How is the place of supply determined for GTA services?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>For registered recipients, the place of supply is their registered business location, deciding between CGST\/SGST or IGST. For unregistered recipients, it is the location where the goods are picked up, impacting the GST type.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Goods Transport Agency under GST is liable for transporting goods from one location to another to help the sender and receiver of goods. The place of supply determines the GST rate applicability for transporting such goods. Further, the GST liability varies based on the aggregate annual turnover of GTA, registered or unregistered [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":72474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-72445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/72445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/comments?post=72445"}],"version-history":[{"count":3,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/72445\/revisions"}],"predecessor-version":[{"id":72536,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/72445\/revisions\/72536"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media\/72474"}],"wp:attachment":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media?parent=72445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/categories?post=72445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/tags?post=72445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}